Cement-maker Cemex Holdings Philippines was fined P50,000 by environmental regulators for an oil spill in its Antipolo manufacturing site amid strong wind and heavy rains in September 2015.
In a disclosure to the Philippine Stock Exchange yesterday, Cemex said it received on Sept. 6 a copy of the resolution of the Environmental Management Bureau (EMB) of the Department of Environment and Natural Resources relative to this oil spill incident at Cemex’ subsidiary Solid Cement.
The disclosure said that while the EMB’s resolution recognized swift response to the situation—saying the cleanup was 100 percent complete in seven days alongside good results of the water sampling test held after the spill—EMB imposed a fine of P50,000 for violation of the conditions of Solid Cement’s environmental compliance certificate, particularly its failure to prevent the oil spill from happening.
Cemex said the fine would not have any material adverse impact on the firm.
This incident involved the spillage of heavy fuel that overflowed from one of Solid Cement’s storage tanks and was among the matters disclosed in CHP’s prospectus for its initial public offering last year, it said.
Based on the IPO prospectus, the oil spill involved about 2,000 liters of heavy fuel oil that overflowed from one of Solid Cement’s storage tanks, most was recovered within days of the incident. But due to heavy rains, a portion was carried toward drainage areas that led to the Teresa river.
As a result of the incident, three separate administrative proceedings were initiated against Cemex by the EMB, Laguna Lake Development Authority and the City of Antipolo, Rizal.
In its resolution dated May 19, 2016, the LLDA resolved to dismiss this case on the condition that Solid Cement pays P200,000.
In its prospectus, Cemex said Solid Cement had complied with the written directives of the EMB and the City of Antipolo, Rizal.—DORIS DUMLAO-ABADILLA